Merchant stores receive wireless phones from distributors and sell the phones and other communication devices to customers. These phones may be pay-as-you-go wireless phones. Typically, the phones are inactive when the stores receive the phones from distributors. Thus, in order for a customer to use a phone after purchase, the phone must be activated through a communication service provider, i.e., a carrier. For instance, a customer may purchase at a merchant store a phone pre-associated with a specific wireless telecommunication provider. To activate the phone, the customer must later call the provider, at which point the provider determines whether to activate the phone. Typically, providers will automatically activate any phone at a customer's request. Once activated, the phone can be used for its intended purpose, such as wireless communication service.
The traditional method does not allow the carrier to know the status of the phone prior to activation. In other words, at the time of activation, but not prior, the carrier will know that the phone is in the hands of a user and no longer in the chain of distribution. However, the carrier will not know whether the phone was ever legitimately purchased at an authorized retailer. For instance, the carrier will not know whether the person calling to activate the phone is requesting to activate a stolen phone or a legitimately purchased phone.
What is desired is a method of distributing the phone to customers so that a carrier can verify that a phone was validly purchased prior to activation.